There are numerous myths and misunderstandings about estate planning that individuals believe to be true. It is critical to detect these falsehoods to prevent leaving your loved ones with financial and legal burdens after you’re gone.
Let’s debunk the five common myths surrounding estate planning so you can step into this crucial process with ease:
Myth 1: I’m Too Young to Plan
Usually, people think they should start planning their estates when they reach a certain age, but this is not always true. In Canada, there were 307,132 deaths reported between mid-2020 to 2021.
Approximately 60 percent of Canadians did not have a Will in 2016. Nearly 12% had a Will in place, but it was outdated.
Thankfully, there was an increase in 2021, where around 9.8 million Canadians report having an up-to-date Will in place. From 3.5 million in 2016 to 2.95 million in 2021, the number of Canadians with “out-of-date” Wills has significantly decreased. However, this still leaves many Canadian people without a Will.
This is alarming because the annual number of deaths recorded in Canada experienced an increase between 2001 and 2021. It is essential to plan and ensure that your estate is given to the right people even in your twenties.
Myth 2: Estate Planning Means You Have a Lot of Money
Estate planning is not limited to the rich. In truth, every individual can benefit from planning. You don’t need to have a lot of money—if you have something to leave behind, it is essential to have a plan. Don’t wait until it is too late.
Myth 3: It Takes Too Much Time
Estate planning does not need to be a long and complicated process. It’s been streamlined to make it easier for everyone to get started. The planning process is agreed upon in a meeting with your estate planner—usually lasting one to two hours.
It’s important to have a plan that works for you. Your estate planner will go over all the available options and ensure that you don’t leave anything out.
Myth 4: Estate Planning Is Complicated, and Lawyers Are Expensive
Estate planning is not too complex with the help of a lawyer. It’s good to have a lawyer help you ensure that everything is done correctly, but the estate plan is not difficult to maintain once it is established.
Myth 5: Estate Planning Is Not Important
A Will allows you to leave your assets with non-taxable and tax-free gifts to your loved ones. If you die without a Will, the government will decide who gets your assets. In most cases, this means your assets will be divided between your spouse and children, with a bit left for the government and taxes.
However, if you have a Will, you can choose your beneficiaries as you see fit. For example, you can leave a large majority of your assets to your children, with a small amount left to your spouse. The Will also allows you to make gifts to friends, charities, or others.
Estate planning is a necessary part of life. Even if you are young, you can start the process today. Contact a lawyer to get the ball rolling.
An estate plan is necessary for everyone, regardless of how old you are, your income, or the value of your assets. It is never too early to start planning for your future and your loved ones. Estate planning is not a complex process with the help of a good lawyer.
If you want to begin this process, contact your lawyer to be guided through the process. Let them put your Will in place and keep it up-to-date. The future is uncertain, and it pays to be protected.
Are you looking for a Will and estate lawyer in Kanata? Get quality legal advice from Ontario Wills. Our job is to assist you in creating an efficient Will. Having a comprehensive estate plan entails much more than just drafting a Will. Without a detailed strategy, a costly and unpleasant outcome is relatively high. For additional information, get in touch with us right away.